Livermore Schools Approve $14.8M Budget Cut

The significant budget reduction comes after the district approved a new contract with the Livermore Education Association in January 2026. This agreement, which includes a "me too" clause extending similar compensation adjustments to other unions, is projected to cost the district over $30 million between 2025 and 2028, with an impact of more than $13 million in the 2026-27 fiscal year alone. Compounding the financial pressure is a consistent decline in student enrollment. Fewer students result in less funding from the state, a critical issue for a district already engaging in deficit spending. The district's unrestricted general fund balance is projected to drop from $12.9 million at the start of the 2025-26 school year to $7.2 million by 2027-28. To address the shortfall, the district had been considering drastic measures, including the closure of two elementary schools and the elimination of more than 100 classified positions. These possibilities sparked passionate opposition from parents, students, and district employees during crowded board meetings. The budget crisis and the contentious path to approving the cuts have also been marked by leadership instability. The district and its superintendent mutually agreed to part ways in early February 2026, in the midst of the budget deliberations. An acting superintendent has since been appointed. Prior to the budget cuts, the district's financial situation had already shown signs of strain. In November 2025, the Livermore Valley Joint Unified School District experienced a cash shortfall that required borrowing $8.0 million from another of its funds, with repayment scheduled for April 2026. The district's budget challenges and the need for these cuts were foreseen by the Alameda County Office of Education. While the district had a "positive certification" for its first interim budget, the county office expressed concerns about ongoing deficit spending and the fiscal impact of the new labor agreements.